STRYKER. Kevin A. Lobo, President & Chief Executive Officer

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1 STRYKER Kevin A. Lobo, President & Chief Executive Officer January 15, 2014

2 FORWARD LOOKING STATEMENT Certain statements made in the presentation may contain information that includes or is based on forward-looking statements within the meaning of the federal securities law that are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: weakening of economic conditions that could adversely affect the level of demand for our products; pricing pressures generally, including cost-containment measures that could adversely affect the price of or demand for our products; changes in foreign exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect U.S. Food and Drug Administration approval of new products; changes in reimbursement levels from third-party payors; a significant increase in product liability claims; the ultimate total cost with respect to the Rejuvenate and ABG II matter; the impact of investigative and legal proceedings and compliance risks; resolution of tax audits; the impact of the federal legislation to reform the United States healthcare system; changes in financial markets; changes in the competitive environment; our ability to integrate acquisitions, including MAKO Surgical Corp. and the recently announced but not yet closed Patient Safety Technologies, Inc. transaction; and our ability to realize anticipated cost savings as a result of workforce reductions and other restructuring activities. Additional information concerning these and other factors are contained in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. A copy of this presentation will be available for 30 days on the Events & Presentations page of the For Investors section of our website at 2 2

3 KEY THEMES 3 3

4 BREADTH, WITH SPECIALIZATION Neurotech & Spine Neurovascular 5% NSE 3% CMF 2% Knees 16% Recon + Service line Depth in orthopaedics, neurosciences and specialty surgery (including capital) Sustainability Solutions 2% Medical 8% Spine 8% 2012 Sales $8.7B Hips 14% + Customer focus Specialized sales and services aligned with healthcare specialists MedSurg Endoscopy 13% Instruments 15% Other 3% Trauma & Exremities 11% + Scale #1 or #2 in most product categories 4

5 ACCELERATING INTERNATIONAL GROWTH + Europe Returned to growth during 2013 United States 6% Emerging Markets + Trauson Expansion into other emerging markets in % 2012 Sales $8.7B 29% + Grow share Optimize go-to-market models and organizational alignment International (Developed) 5

6 HISTORY OF PERFORMANCE 10 Sales ($B) ~ 9B E Adjusted Diluted Net EPS* ($) Dividends Paid Per Share ($) E * Non-GAAP financial measure. See the reconciliation of GAAP Diluted Net Earnings Per Share to Adjusted Diluted Net Earnings Per Share in the appendix. 6

7 2013 FINANCIAL TARGETS % sales growth excluding FX and acquisitions $4.20 $4.26, +3-5% adjusted diluted net earnings per share % adjusted diluted EPS growth excluding medical device tax, foreign exchange and the R&D tax credit benefits 7

8 STRONG BALANCE SHEET ($ Millions) December September Cash & Short-Term Investments * 4,285 5,138 Net Cash ** 2,523 2,364 Shareholders' Equity 8,597 8,737 Net Cash / Shareholders' Equity 29.3% 27.1% * ** Note: As of September 30, 2013 approximately 51% of our consolidated cash and cash equivalents and marketable securities were held in locations outside the United States. Net Cash = Total Cash & Short-Term Investments less Debt Stock Repurchases 2010: $426MM; 2011: $622MM; 2012: $108MM; 2013: $252MM 3Q YTD 8

9 OPTIMIZING SHAREHOLDER RETURN + M&A to drive sales growth Focused on our core and key adjacent markets Guidelines: - generally to exceed cost of capital by Year 3 - target 12.5%+ IRR + Dividend growth 15% increase estimated for Share repurchases $252M repurchased through 3Q 2013 with $748M open authorization 9

10 M&A TO ENHANCE PORTFOLIO OtisMed Ascent Porex Orthovita Concentric Trauson Patient Safety Technologies Gaymar Memometal Surpass MAKO Sonopet Neurovascular + Depth Niche within or provides entrance to an expanded market segment + Breadth Complimentary to existing product portfolios, addresses new customer needs or expands geographic reach Core Business Adjacency Pending deal expected to close in 1Q14 10

11 MAKO: TRANSFORMING ORTHOPAEDIC SURGERY Procedural Advancements Consistently reproducible results Pre-operative 3D planning Bone preparation Implant placement Joint alignment and balancing Increased process efficiency Improved Patient Experience Improved clinical outcomes Joint function restoration Minimize soft tissue disruption Reduce post-operative pain and other complications Enhanced patient satisfaction New Generation of Implants Potential for bone preserving novel implant geometries Address clinical needs uniquely with robotic capability New designs enabled by robotics capability and functionality Value of Robotic Assisted Surgery 11

12 PATIENT SAFETY TECHNOLOGIES, INC + Improving safety Prevention of the most common retained foreign object in the operating room with the Safety-Sponge System and SurgiCount 360 compliance software + Reducing healthcare costs Sponges are the most common retained object, with approximately 2,300 incidents reported annually at an average cost per incident of over $400,000 + Tuck-in to Instruments Division Demonstrated history of success leveraging sales and distribution. Complementary sale to Neptune and Steri-Shield offerings. 12

13 STRYKER S ONGOING GOALS DRIVE ORGANIC GROWTH Strong history of execution Increased R&D spending behind new products Accelerating international growth MISSION DELIVER OPERATIONAL LEVERAGE Global quality and operations initiatives Optimizing commercial business models Driving shared services 13

14 RECONSTRUCTIVE + Continue Trauma & Extremities momentum, including Foot & Ankle + Focus on key power brands in Hips & Knees + Broaden biologics capabilities + Strengthen position in Spine & Sports Medicine + Accelerate momentum of inventory savings 14 14

15 MEDSURG + Relaunch Neptune and re-establish clear market leadership + Continued focus on buying groups and IDNs + Creative financing options for capital acquisition + Sustainability Solutions return to double-digit growth with new 510ks 15

16 NEUROTECH & SPINE + Sales force expansion and new products + Medical education collaboration across Neurotechnology businesses + Cross divisional co-marketing initiatives + Continue ischemic stroke market development and trial for US flow-diverter 16 16

17 INTERNATIONAL + Improve market share and margins in Europe + Maintain / grow share in key developed markets + Expand presence in premium and value segment of high growth emerging markets Priority countries BRIC + Turkey Expand Trauson beyond China 17

18 DRIVING LEVERAGE IN COGS Gross margin expansion Plant network optimization Efficient integration of acquisitions Global sourcing Product cost reduction Reduction of warehousing and distribution costs Improved inventory management Supply chain optimization Adjusted Gross Margin* (excluding the impact of the Medical Device Excise Tax) 18 * Non-GAAP financial measure. See the reconciliation of GAAP to non-gaap in the appendix. 18

19 DRIVING LEVERAGE + Actions targeting excess facilities and G&A opportunities + European HQ in Amsterdam in Q3, ERP investments in multiple divisions + Procurement initiatives in direct and indirect spending 19 19

20 STRYKER ADVANTAGE + Ongoing organic growth at the high end of med-tech Depth and specialization Accelerating global growth + Meaningful operational leverage Capacity for multi-year improvements Global quality and operations initiatives Optimizing commercial business models + Healthy balance sheet & cash flow generation + Steady flow of innovation and commitment to R&D + Well positioned for the future 20

21 STRYKER Appendix

22 NON-GAAP FINANCIAL MEASURES We supplement the reporting of our financial information determined under GAAP with certain non-gaap financial measures, including percentage sales growth in constant currency; percentage organic sales growth; adjusted gross profit; adjusted selling, general and administrative expenses; adjusted operating income; adjusted effective income tax rate; adjusted net earnings; and adjusted diluted net earnings per share. We believe that these non-gaap measures provide meaningful information to assist investors and shareholders in understanding our financial results and assessing our prospects for future performance and are important indicators of our operations because they exclude items that may not be indicative of or are unrelated to our core operating results and provide a baseline for analyzing trends in our underlying businesses. Management uses these non-gaap financial measures for reviewing the operating results of reportable business segments, and for analyzing potential future business trends in connection with our budget process and bases certain annual bonus plans on these non-gaap financial measures. To measure percentage sales growth in constant currency, we remove the impact of changes in foreign currency exchange rates that affect the comparability and trend of sales. Percentage sales growth in constant currency is calculated by translating current year results at prior year average foreign currency exchange rates. To measure percentage organic sales growth, we remove the impact of changes in foreign currency exchange rates and acquisitions that affect the comparability and trend of sales. Percentage organic sales growth is calculated by translating current year results at prior year average foreign currency exchange rates excluding the impact of acquisitions. To measure earnings performance on a consistent and comparable basis, we exclude certain items that affect the comparability of operating results and the trend of earnings. Because non-gaap financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-gaap financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported sales growth, gross profit, selling, general and administrative expenses, operating income, effective income tax rate, net earnings and diluted net earnings per share, the most directly comparable GAAP financial measures. These non-gaap financial measures are an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the reconciliations to corresponding GAAP financial measures below, provide a more complete understanding of our business. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure

23 RECONCILIATION OF GAAP TO NON-GAAP RESULTS (Per Share Amounts) Diluted Net Earnings per Share $2.44 $2.78 $2.77 $3.19 $3.45 $3.39 Acquisition and integration related charges Restructuring and related charges Income taxes on repatriation of foreign earnings (0.02) - - Uncertain income tax position adjustment (0.26) - Intangible asset impairment Net earnings and gain on sale of discontinued operations (0.07) Impairment of property, plant & equipment Gain on sale of property, plant & equipment (0.03) - - Regulatory matters Rejuvenate and ABGII recall Adjusted Diluted Net Earnings per Share from Continuing Operations $2.40 $2.83 $2.95 $3.33 $3.72 $4.07 (Millions of Dollars) YTD 3Q13 Net Sales 8,307 8,657 6,553 Gross Profit 5,496 5,876 4,428 Gross Margin 66.2% 67.9% 67.6% Adjustments to gross profits Acquisition and integration related charges Restructuring and related charges Adjusted Gross Profit 5,639 5,899 4,453 Adjusted Gross Margin 67.9% 68.1% 68.0% A copy of this presentation will be available for 30 days on the Events & Presentations page of the For Investors section of our website at